Construction loan based on pledging a stock portfolio

Good morning everyone, this is my first post here and I thank you for helpful tips.

Background: I need a short-term construction loan for a maximum of 3 years.

My stock portfolio exceeds the amount of the required construction loan by about 100%. That means I could simply sell half of my stocks and pay for the construction. However, the stocks are tax-privileged (purchased before 2008) and I would therefore be reluctant to sell them.

Furthermore, due to the short financing period, I would like to avoid the entry of a land charge in the land register.

Does anyone know a bank that grants construction loans against the pledge of a stock portfolio? The bank holding the portfolio (Consors) says that pledging the stock portfolio would be no problem. An "electronic lock" would be placed around the stock portfolio, which prevents any withdrawals from the portfolio. However, Consors does not grant construction loans.

My house bank does grant construction loans, but exclusively against the entry of a land charge.

Regards Gotthilf

I have also tried that and found no bank that does this. It is also very risky since the [Depot] does not have a fixed value...

And even if you find a bank (check with your house bank again, that still offers the best chance, or a bad house bank).

The problem is that the WIKR has not made it easier for banks to grant loans.

What you have to expect, however: The loan will be more expensive due to provided (unstable) collateral and lack of privileging.

And then the question is what is cheaper:

3 years at 1% interest surcharge or one-time 3% notary and court fees.

The nice thing about the land charge is that you can set it aside and reuse it later if needed.

In the end, both could cost the same. So it’s simply a matter of price.

With such a short term, I wouldn’t get stuck on the mortgage. It won’t have great conditions anyway, and you’ll probably have to bear the one-time costs. You might as well take the Lombard loan for the three years. Or just sell and pay directly; that’s a guaranteed return you won’t get elsewhere, tax-free as well. If you maintain such a nice [Depot], you surely also have funds in [RK1-2]. Can’t you reallocate some of that for the property? It should be much easier to borrow against a fixed deposit.

He is looking for a Lombard loan after all. But that does not change the fact that WIKR throws a wrench in his plans as soon as the word [Grundstück] comes up.

Nice task. I would try to borrow the money privately. I wouldn’t touch the [Depot] at the moment either. I can understand that well. How much is it about?